Interest Continues to Accrue Clause Samples
The "Interest Continues to Accrue" clause establishes that interest charges on an outstanding balance will keep accumulating until the debt is fully paid. In practice, this means that even if a payment is late or the principal remains unpaid after a due date, the creditor is entitled to keep charging interest on the remaining amount. This clause ensures that the lender is compensated for the time value of money and discourages delayed payments by making it more costly for the debtor to postpone settling their obligations.
POPULAR SAMPLE Copied 1 times
Interest Continues to Accrue. During the Forbearance Period, the Outstanding Amount shall bear interest at the interest rate set forth under the Notes (8%); it being understood that the default rate shall apply upon the occurrence of any Event of Default (other than Existing Defaults) thereunder or upon termination of the Forbearance Period.
Interest Continues to Accrue. During the Forbearance Period, the Outstanding Amount shall bear interest at a new interest rate under the Notes of eighteen percent (18%).
Interest Continues to Accrue. All interest due on the Existing IRG Debt Instruments shall continue to accrue until the Extended Maturity Date at the rates set forth therein, and shall be due and payable in full on the Extended Maturity Date, subject to all of the other terms and conditions of the Existing IRG Debt Instruments.
Interest Continues to Accrue. During the Forbearance Period, the Outstanding Amount shall bear interest under the Notes of eighteen percent (8%).
Interest Continues to Accrue. During the Forbearance Period, the Outstanding Amount shall bear interest equal twelve percent (12%), which interest shall be paid in accordance with the payments made pursuant to Section 4 of this Agreement.